India not to subsidize sugar exports: official

The Indian Government has refused to subsidize sugar exports but considers building a buffer stock to help mills facing a price crunch.

Indian Agriculture Minister Sharad Pawar told Xinhua Tuesday that "the government feels the benefits of export subsidy will not come to the benefit of the domestic industry as international prices will come down."

Pawar said his ministry is also examining proposals from the industry that wants the government to maintain a buffer and release stocks when required, or have mills to hold the stocks with funds from the government.

"We are giving serious thoughts to create a buffer. This will go to the cabinet for approval in the next 15 days," he said.

In fact, sugar prices have fallen in the last six months to about 300 U.S. dollars per ton from 400 U.S. dollars, making exports unprofitable.

India banned sugar exports last August when global prices were high and lifted the restriction in January when prices fell sharply.

Source: Xinhua